Stocks to Watch
Week of May 10
NIO Inc. (NIO)
China is by far the largest single electric vehicle (EV) market in the world, and NIO is my favorite Chinese EV manufacturer.
The Chinese central government is starting to push TSLA out of the country in favor of its own domestic EV manufacturers.
In fact, the Central Government is restricting government and military officials from buying TSLA. I like buying shares of NIO if shares trade down to $34, which is support. This stock traded as high as $66.99 earlier this year, which means we could see a double in the next 12 months if retail traders shift their focus back into Chinese EVs.
AMC Entertainment Holdings Inc. (AMC)
AMC reported earnings May 6.
Of course, the numbers were terrible.
That’s to be expected, considering the company’s theaters have been all but shut down during the lockdown. That’s about to change as the country moves to remove restrictions this summer. If the stock moves above $10.15, I like buying the AMC June 18, 2021 $12/$13 Call Spread for $0.20 or less. That gives you a 5-to-1 reward/risk profile.
Additionally, the short float is 21%, which means the Reddit crowd could take a swipe at pushing shares higher.
Pfizer Inc. (PFE)
Pfizer has already had its Covid vaccine run.
From here, I see more downside than upside.
And now, it could be losing its Covid-19 vaccine patent protection.
How high could it actually go without its patent protection? I see a flushing out coming. I like buying the PFE September 17, 2021 $35/$30 Put Spread for $0.50 or less. This trade has 10-to-1 risk reward, which I like a lot!
Alibaba Group Holding Ltd. (BABA)
BABA is basically the Amazon of China.
The company is scheduled to report earnings on Thursday before the open. The stock has been dragged down as the Chinese central government put pressure on the big Chinese platforms over concerns about shadow banking and the power that the platforms have.
I like picking up shares of BABA if it trades down to $220, which is support. This stock could easily push back up to $300 within the next 12 months.